Peter Khalil (Wills, Australian Labor Party) Share this | Hansard source

I'll take that interjection from the member for Deakin, because he wasn't listening to the early part of my speech when I said very clearly: we were focused on the needs of low- and middle-income Australians. We supported the tax cuts for them. We sought to split the tax bill, which you refused to do when you were in government because you cared about politics over all else—not about the people and their needs. But our policy will give the biggest tax cuts to the people in the greatest need. That is the big difference between us and you. We care about the people that we represent, and we put forward policies that make a difference to their lives. Whether it's Freema, or whether it's people who are on $40,000 or $45,000, they will get a tax cut when, under your policy, they would have gotten absolutely nothing. They would have gotten zero!

For incomes between $45,000 and $135,000, Labor is reducing the 32.5 per cent tax rate to 30 per cent. That reduces the burden for those who need it the most. The impact on reducing the tax liability for those in the first two brackets is allowing a woman like Freema to better care for her daughters and to abate that rental stress that she's feeling. The member for Deakin might want to listen to this. For childcare workers and mechanics—

Maybe he gets his car fixed by one of these mechanics! Why don't you tell your mechanic next time you see him or her that, in my electorate of Wills, a mechanic or childcare worker who is earning $50,000 will receive $920 in cuts under Labor's plan instead of receiving a paltry $125 under your tax cuts policy. Maybe you can ask your mechanic to buy you a coffee with that extra money, because you might not want to spend it on him or her. A primary school teacher in the seat of Wills earning $80,000 will receive almost double the tax cut that they would have received under the coalition's plan. We know that most of the primary school teachers are women. That is the predominant gender in that workforce, and these teachers are now going to keep $1,679 in their pockets—almost double what they would have received.

We are also increasing the threshold at which the 37 per cent rate will now apply, starting from $135,000 instead of $120,000, and increasing the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000. Overall, we're lowering the tax rate in two brackets and increasing the threshold of taxable income in the other two brackets. These changes mean that families with a combined income of $130,000 are so much better off than they would have been.

Schools across Australia have just opened. Households are feeling the pinch at the supermarket and at the uniform shops. Mums and dads are feeling the pinch at the chemist. Even a little bit of entertainment—taking the kids to a movie, where there's a lot of popcorn and candy—costs a fair bit. With one parent earning $80,000 and the other earning $50,000, households will now receive a tax cut of over $2,600 combined. That's significant. It means something to them. Under the Coalition, they would have received under $1,000. We think the economic circumstances facing households right now warrant this greater action. The need is so great. That's why we're taking that action.

In conclusion, I want to say that this is just an example of one of the instances where this government is going in to bat for working Australians, because we care about those people. Low- and middle-income Australians, who are facing the most pressures due to the rising cost of living, are receiving the largest tax cuts. That's significant. Eighty-four per cent, as I said, across the country will benefit from the changes that are before us today. They'll get a bigger tax cut. And 100 per cent of Australians will receive a tax cut.

Further, the changes, I should note, to Medicare, ensure that, as to the levy, people on lower incomes pay less on or are exempt from the Medicare levy, which is also an additional relief for those people. I'm proud to be part of this government that is taking this action. Policymaking can be complex, but sometimes, at its core, it's really quite simple. In this case, it's about ensuring more Australians are supported through this tax cut for every taxpaying worker. It's about a simple proposition: look after those who need it the most with the greatest support.

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